Is your pricing strategy hurting or boosting your business?
As an entrepreneur, you may often wonder how to price your services so you are not undercutting yourself or lose clients due to what may seem like an overprice. But I have come to find out that price is just one of the determining factors of whether a client decides to work with you.
In addition to the quality of your work, there are other reasons other than price that a client will pay for your services. What you offer and how you offer will be a game changer in whether a client will want to work with you.
Here is the secret to pricing your services without hurting your business.
- Charge clients based on value
Charge clients based on the value you will deliver. For example, if a client wants you to set up and manage their Facebook page and grow a community while converting them, here are good questions to ask:
- How will a Facebook page help a business?
- How will you know the Facebook page is successful for your business?
- How much money do you lose without having a Facebook Page?
So dig deep and know what your clients needs are behind the project and how much real value it will offer. In this case, it’s not the number of fans that will bring in revenue for them, it will be the number of fans who will convert into paying customers that will matter. This will help you know that you are billing what you are worth.
- Be professional and thorough in your quote
If you are not thorough in your quote, you will appear unprofessional. For example if you just send an email saying “yes I can do this job for $3,000, there are several problems in this kind of quote:
- It does not show any details of the nature of work or the value it will deliver.
- It’s focused on price.
- It turns into a Yes or No because of it’s lack of details
- Many high value customers will dismiss it due to it’s informal nature.
Research shows that the right presentation of your fees to your clients can gain you more approved projects. Better still, it can even gain you more money for each project.
Here is an approach I found from www.sixrevisions.com. Try it next time you are presenting your fees to your clients. It’s known as the bundled pricing technique. Here’s how it would look like:
- Bundle your fees into a single solution
Instead of itemizing your rates like in this example:
Facebook page management – $500
Content creation – 1,000
Create a single solution with a price (do not include hourly information). Name your solution based on what benefit it will bring to your clients problem.
|Service Solution/Benefit Name||Price #|
|Solution description||Write the description for your service here|
Creating a Facebook marketing funnel
This solution includes branding, content creation, list building and selling.
Branding: The focus will be on setting up and optimizing your Facebook page to lay your brands foundation, increase your social media presence and build a community.
Content creation: The focus will be to create a plan to post timely, relevant and value based content that will engage and ignite action with your fans, by getting more likes, comments, shares and clicks.
List Building: The focus will be to use strategies to build a Facebook page with quality fans and turn those fans into email subscribers.
Selling: The focus will be to effectively craft Facebook promotions and create a plan to use a promotional calendar to effectively boost your sales.
As you can see, present your services in a way that will clearly show your customers the benefits that your services will give them. If you show them clearly how you are going to save them time and money doing what you promise to do for them, they will pay for your services no matter the price.
How about you? I’d like to hear your thoughts. Leave a comment below and share any thoughts of pricing strategies you use that have boosted your business.